Well, for the market’s favorite reason – – which is no reason in particular – the /ES has zoomed about 100 points higher, and the bulls are cheering and shrieking and framing posters of Tom Lee and Jim Cramer in their bedrooms. Here we see the /ES has broken above its recent high:

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If you review my post of July 21st and its follow-up, you’ll see this rally lines up beautifully with the grand plan. In particular, I stated:

If this transpires again, we’re talking about an /ES above 4,200.

Which would put us somewhere in this rounded rectangle triangle. Importantly, this is the moment the few remaining bears of the world say “fuck this” and give up, which is precisely when the bulls of the world will feel a five-foot metal beef skewer going up their backside. It will seem like the perfect breakout, but it’s a fake-out.

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Here is the fabled white arrow from hell. I’m guessing it’s got about 50 points to go, or thereabouts.

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My current portfolio is as follows:

1. 30 bearish positions;
2. 27 of them January 2023 puts; 3 of them December 2022 puts, merely because there’s no January contract for those equities;
3. A mere 2% cash;
4. 21 positions in the green, 9 in the red
5. Most severe loss right now 8.9%

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